Specificity of the registering
There are several laws that Tunisia has enacted purposely to encourage foreign entrepreneurs to invest in tourism, finance, and industrial sectors. The investment incentive code also provides various incentives like financial support, full tax allowance, investment bonuses, reduced rates, exemptions, etc. Perhaps this is the reason why Tunisia has recorded a significant increase in foreign investment.
The investment incentives code applies to all sectors except those governed by specific. Some of these sectors include the financial, energy, mining sector, and domestic commerce. All projects are declared at API’s offices for industrial and service activities. While the relevant ministry authorises some activities, specific activities for investment that are not fully exporting service must be approved by the High Commission for investment. This often happens when the foreign investors are holding a huge portion of interest in the Company.
Benefits of registering the company
The following are benefits that Companies incorporated in regional development can get:
Exemption of full tax in 10 years profits and Tax base reduction of 50% applicable for new ten years period;
Exemption of full tax on reinvested profits;
The full assumption in regional development areas during the first five years, and partially on the following five years (normally from 20-80%);
The State possibly contributes to the expense of infrastructure;
Besides limitations, an investment bonus of 15% to 25% is available based on the investment value;
The high commission in charge of investments has the authority to grant any investment project further incentive only if it is a special case or has significant importance.
Types of company
Types of Companies Available for Company Formation in Tunisia
The Company with more than one shareholder whose liability is limited to its contributions is referred to as SARL. On the other hand, it is called SUARL if the Company of the same type is made up of only one shareholder. The partnership shares that represent the Company’s capital stock are freely transferable, and incorporation procedures are even much simpler as compared to Public Limited Company. Setting up a SARL Company require up to 7 days maximum with the help of the authority concern.
Limited Liability Company
It requires a minimum capital of TND 1000 in Tunisia. This amount should be paid in full at the time of the Company’s constitution. According to state jurisdictions, 1 dinar is regarded as the minimum nominal value for one share.
Public Limited Company
It needs a minimum of 7 shareholders who can be either legal entities or natural persons. Once this Company commences its operation, it can only last for a maximum lifetime of 99 years, according to the stipulated jurisdictions. The payment of subscribed shares in cash starts during the time of the Company’s incorporation, where one-quarter of it is paid. The remaining amount shall then be made either one or more instalments within a period not exceeding five years from the date when the Company was registered.
The shareholder would then appoint an auditor who will take charge of PLC shares for three years. The role of the auditor will be to check the Company’s accounts and present audit reports during the general meeting of the shareholders.
The foreign entrepreneurs who want to invest in Tunisia are subject to income tax that is levied on their Tunisian sources revenues. Note also that Tunisia is a signatory of tax treaties, which is a relief from double taxation. Some of the countries under the one tax treaties include the USA, Canada, European Union
Resident companies and non-resident companies with the permanent establishment are liable to corporate income tax. Tunisia applies 30% of corporate tax as a standard rate and 35% corporate tax for some activities such as banks and financial institutions.
All the Companies that have been exporting since the first day of January 2012 are taxable at the rate of 10%. The companies that existed before this date had their first ten years benefiting from the full exemption of their profits before application of a 10% tax rate. PFSER guides clients on how to benefit from all tax incentives.
The tax compliance and tax advisory service in the country are taken care of by the PFSER Tunisia team. This special task force advises entrepreneurs on the most tax-efficient way to structure their foreign business and its funding, incorporate local tax laws, management of effective tax rate, and provision of expatriate tax services.